NEW MEDIA RELEASE: Fixed rate demand falls again

November 04, 2015
Whitney Evans

After hitting a four year low last month, fixed rate demand has fallen further still.

According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for just 13.88% of all loans written throughout the month of October – down from 14.41% the month prior.

Local Mortgage Choice franchise owner/mortgage broker Antony Muir said the last time demand for fixed rate products was this low was back in June 2011.

“Fixed rate demand has fallen every month for the last four months in a row,” he said.

“We had expected to see a slight lift in demand for fixed rate products last month, after all of the majors decided to increase the interest rates on their suite of variable owner occupied and investor products.

“That said, while the majors all raised their rates in October, most of the higher rates won’t come into effect until November 20. When this happens, we might start to see more property buyers opting for fixed rate products.”

Across the country, demand for fixed rate home loans was once again weakest in Victoria, where this type of product accounted for just 8.65% of all loans written.

Queensland and South Australia were not far behind, with fixed rate home loans accounting for 12.36% and 12.76% respectively. At the other end of the spectrum, fixed rate demand was strongest in New South Wales, with this type of product accounting for 17.31% of all loans written.

Of the variable rate loans on offer, ongoing discount products once again proved the most popular with borrowers, with this type of product making up 52.80% of all loans written in October.

“Even though all of the majors have recently lifted their variable interest rates, the mortgage market continues to be very competitive,” Mr Muir said. 

“Lenders are still actively competing for market share through low rates, which opens up a great opportunity for potential and existing home owners who are in the market for a sharp deal.”

For more information, please contact Mortgage Choice in Bundall on 07 5504 5569 or visit www.mortgagechoice.com.au/antonymuir

Our home loan experts will evaluate your individual situation and help set you on the path to your home ownership goals.

 

 

 

NSW/ACT

VIC/TAS

QLD

SA/NT

WA

 Variable

82.69%

91.15%

87.64%

87.24%

85.05%

Basic Variable

11.31%

18.34%

19.81%

24.09%

11.32%

Standard Variable

14.94%

17.72%

13.45%

10.24%

9.65%

Ongoing Discount

53.33%

50.30%

53.32%

48.68%

58.57%

Line of Credit

2.79%

2.81%

0.73%

3.25%

3.42%

Introductory Rate

0.32%

1.98%

0.33%

0.98%

2.09%

 Fixed

17.31%

8.85%

12.36%

12.76%

14.95%

                     

 

For further information and daily updates:

https://www.mortgagechoice.com.au/antony.muir

https://www.facebook.com/MortgageChoiceBundall

https://plus.google.com/MortgageChoiceBundall

 

Important information

This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.

About Mortgage Choice

Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.

Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.

Since that time, the company has grown and developed into a fully fledged financial services provider.

Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.

Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.

Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education;   No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.

Visit www.mortgagechoice.com.au or call customer service on 13 77 62.

Posted in: Home loans

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